Most first-time affordable home buyers will purchase a home that is four to five times higher than their annual income with the monthly payments for all debts, including mortgage payment, not exceeding a certain percentage of their monthly income.
As an example with a 3% Down Payment
- Credit score of 660 the total debt should not exceed 41% of household gross income.
- Credit score of 680 the total debt should not exceed 50% of household gross income.
Although, there are a number of online mortgage calculators available to help you get an idea of what you can afford it may be best to meet with a mortgage loan officer so that you can get a complete picture of all of your options. Delphic can provide you with a list of lenders that are familiar with Affordable Housing.
The loan officer will help you determine if you qualify for a mortgage right now and what type of loan program would work best for you. There are grant programs for first time homebuyers as well as down payment and closing cost assistance money that is available.
It is never too early to meet with a lender and it won’t cost you anything. Even if you are not ready to buy right now, the loan officer can review your credit, budget and savings and let you know what changes need to be made so that you can move towards your goal of homeownership.
If you would like a list of lenders and loan officers who are familiar with First Time Homebuyer loan programs please request; Renee@DelphicAssociates.com